📊 FONR Key Takeaways
Is FONR a Good Investment? Thesis Analysis
FONAR exhibits solid profitability metrics with 13.8% operating margins and 8.4% net margins, supported by fortress-like balance sheet strength with minimal debt and 10x current ratio. However, stagnant revenue growth (+1.4% YoY), deteriorating cash flow generation (negative FCF of -404K), and weak return metrics (2.4% ROE, 2.0% ROA) signal operational challenges despite financial stability.
Why Buy FONR? Key Strengths
- Exceptional balance sheet strength with 176.9M equity, 53.0M cash, and effectively zero debt (7.0K LTD)
- Robust liquidity position with 10.0x current ratio and 9.80x quick ratio, providing significant financial flexibility
- Solid profitability metrics with 13.8% operating margin and 8.4% net margin in a medical device sector
- High interest coverage ratio of 106.3x demonstrates minimal financial distress risk
FONR Investment Risks to Consider
- Anemic revenue growth at only 1.4% YoY indicates potential market saturation or competitive headwinds in medical imaging
- Negative free cash flow of -404K despite 4.3M net income suggests capital intensity exceeds earnings generation
- Weak return on equity (2.4%) and return on assets (2.0%) indicate inefficient capital deployment despite large asset base of 217.2M
- Operating cash flow of 1.9M significantly lags net income of 4.3M, raising earnings quality concerns
Key Metrics to Watch
- Revenue growth acceleration - critical to justify investment case
- Free cash flow trend - must return to positive to validate earnings sustainability
- Return on equity and ROA improvement - capital efficiency is primary concern
- Operating cash flow to net income ratio - monitor earnings quality deterioration
FONR Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 10.00x current ratio provides a solid financial cushion.
FONR Profitability Ratios
FONR vs Healthcare Sector
How FONAR CORP compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FONR Overvalued or Undervalued?
Based on fundamental analysis, FONAR CORP has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FONR Balance Sheet & Liquidity
FONR 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: FONAR CORP's revenue has grown significantly by 16% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.47 reflects profitable operations.
FONR Growth Metrics (YoY)
FONR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $25.0M | $2.0M | $0.28 |
| Q3 2025 | $25.7M | $1.9M | $0.27 |
| Q2 2025 | $25.0M | $2.0M | $0.31 |
| Q1 2025 | $25.0M | $2.3M | $0.33 |
| Q3 2024 | $25.4M | $1.9M | $0.30 |
| Q2 2024 | $24.3M | $2.2M | $0.34 |
| Q1 2024 | $23.2M | $2.0M | $0.31 |
| Q3 2023 | $24.6M | $2.3M | $0.32 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FONR Capital Allocation
FONR SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for FONAR CORP (CIK: 0000355019)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FONR
What is the AI rating for FONR?
FONAR CORP (FONR) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FONR's key strengths?
Claude: Exceptional balance sheet strength with 176.9M equity, 53.0M cash, and effectively zero debt (7.0K LTD). Robust liquidity position with 10.0x current ratio and 9.80x quick ratio, providing significant financial flexibility.
What are the risks of investing in FONR?
Claude: Anemic revenue growth at only 1.4% YoY indicates potential market saturation or competitive headwinds in medical imaging. Negative free cash flow of -404K despite 4.3M net income suggests capital intensity exceeds earnings generation.
What is FONR's revenue and growth?
FONAR CORP reported revenue of $51.6M.
Does FONR pay dividends?
FONAR CORP does not currently pay dividends.
Where can I find FONR SEC filings?
Official SEC filings for FONAR CORP (CIK: 0000355019) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FONR's EPS?
FONAR CORP has a diluted EPS of $1.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FONR a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, FONAR CORP has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FONR stock overvalued or undervalued?
Valuation metrics for FONR: ROE of 2.4% (sector avg: 15%), net margin of 8.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FONR stock in 2026?
Our dual AI analysis gives FONAR CORP a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FONR's free cash flow?
FONAR CORP's operating cash flow is $1.9M, with capital expenditures of $2.3M. FCF margin is -0.8%.
How does FONR compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 8.4% (avg: 12%), ROE 2.4% (avg: 15%), current ratio 10.00 (avg: 2).